Ethiopia is considered as one of the most stable countries in Africa.
The Constitution of the country, adopted in 1995, provides for a multi-party political system.
Elections are held by universal suffrage every five years.
The FDRE has a parliamentarian form of government with a bicameral parliament which comprises the House of the Peoples’ Representatives (HPR) and the House of the Federation (HoF).
The House of the Peoples’ Representatives is the highest authority of the Federal Governm...

TRAINABLE LABOUR
• Ethiopia has a young, trainable and disciplined labour force.
• Private universities and colleges flourishing in Addis Ababa and regional cities.
• Over 30,000 university graduates per year, including business, management, economics, accounting, law and engineering graduates.
• Ample opportunity to meet the demand of skilled manpower in the technical and vocational field due to the expansion of Technical and Vocational Education and Training (TVET) college.
• Average priv...

1. STABLE ECONOMIC ENVIRONMENT
• Comprehensive development strategy resulting in strong economic growth.
• Stable macro-economic condition.
• Double digit economic growth averaging 11% per annum in the past 7 years.
• Generally, inflation managed at a single digit figure.
• Stable exchange rate.
• Government commitment to private sector.
• Safe and secure working and living environment, identified by the UN and the International Chamber of Commerce (ICC) as a key asset for investors in Et...

Manufacturing

Manufacturing in Ethiopia’s 5 years plan began in 1957 to the present which shows that the country wanted to expand its economy to alleviate poverty and compete with the biggest market in the world.

The value of exports and the Ethiopian textile and garments industry has increased rapidly from USD 10 million to 120 million during the past ten years and Ethiopian government aims to boost exports. By focusing on social and health standard of staffs and the environment, Ethiopian made clothes can be international competitive and acknowledged in the long run.

Ethiopian government has identified several strategic investment areas as a priority that deserves incentives in order to attract the private sector. One of the major areas that are currently enjoying a significant amount government incentive is the manufacturing sector. With the objective substituting the bulk import of manufactured products, which is consuming the already scarce hard currency of the country, the government has been providing incentives for the private sector interested to be engaged in a range of light industries.

Agro-processing such as production of textiles, leather and food processing and packaging are identified by the government as strategic sectors that have the potential to create a huge amount job while supporting the agriculture sector that mainly depend on small scale farmers, who provide their products as an input for these industries.

In addition, the government has also been encouraging the local production of medicines and chemicals, with the main intention of saving the several hundreds of millions of hard currency the country spend in importing the products and facilitating the technology transfer in the sector.

According to report of the World Health Organization (WHO), local production of generic medicines promises affordability, accessibility and availability of needed drugs.